Overview

* Innovative Solutions Q3 revenue rises 105.2% yr/yr, beating analyst expectations

* Net income for Q3 was $2.4 mln, or $0.14 per diluted share

* Company secured $100 mln credit facility to support growth strategy

Outlook

* Company expects full-year revenue and EBITDA growth over 30% vs 2024

* Company anticipates improved gross margins in late fiscal 2026

* Company expects reduced F-16 revenue next two quarters

* New credit facility to support long-term growth strategy

* Completion of Exton facility to enhance manufacturing capacity

Result Drivers

* F-16 PRODUCT LINE - Revenue boost attributed to significant sales from recently acquired F-16 product line, with deliveries pulled forward to build safety stock

* GROSS MARGIN IMPACT - Elevated costs on F-16 line affected gross margins, expected to improve post-transition to Exton facility

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $24.10 $18.20

mln mln (2

Analysts

)

Q3 EPS $0.14

Q3 Net $2.40

Income mln

Q3 Gross $8.60

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy."

* Wall Street's median 12-month price target for Innovative Solutions and Support Inc ( ISSC ) is $10.95, about 80.2% below its August 13 closing price of $19.73

* The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)